Speaker of Parliament Jacob Mudenda has criticised the government pension scheme as outdated and to blame for the suffering of the country’s pensioners.
Zimbabwe’s never ending economic crisis has resulted in the deterioration in the quality of life for pensioners, eroding their monthly pay-outs despite years of service and contribution.
The switch to the greenback in 2009 immediately wiped out the value of Zimbabwe dollar-denominated investments, leaving thousands of pensioners destitute.
Since then, senior citizens and pensioners have been victims of the country’s economic decay.
Mudenda urged Parliamentarians to speed up the State Services Pensions Bill to ensure the welfare of pensioners is catered for.
“I am convinced that the current government pension scheme has served its purpose over the years, but the evolving socio-economic landscape demands its continuous refinement,” Mudenda said during a sensitisation workshop for Parliamentarians centred on the Bill.
“It is my considered view that the creation of a State Service Pension Fund, as envisioned in this Bill, is a critical step towards strengthening the financial security of our civil servants and ensuring the sustainability of pension benefits.
“Pensioners are a crucial segment of our society, and we must ensure that they are not left behind as we work towards economic transformation.”
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Mudenda said it was disheartening that pensioners were living miserable lives despite years of contribution to pension schemes.
“We have witnessed far too many instances where former civil servants find themselves struggling to maintain even basic dignity in their retirement years which is unfit to their human dignity,” he said.
“This Bill demonstrates a clear recognition of the need to overhaul the current pension system and establish a system that truly honours the service and sacrifice of our public servants who give the prime of their lives towards actualising the national development interest.”
With Zimbabwe’s food basket ever increasing, pensioners and their dependents are some of the country’s poorest.
An unpredictable economic climate, rampant inflation including for goods priced in American dollars and general profiteering have all contributed to making survival hard for pensioners in Zimbabwe.
The purpose of the Bill is to establish a State Service Pension Fund to ensure that members enjoy a decent standard of living in their retirement.
The Fund will provide for payments of pensions, gratuities and other benefits in respect of retirement of persons employed by the State.
The creation of the Fund is also in line with the International Labour Organisation’s promulgation on social security
“The establishment of this State Service Pension Fund will allow for a more structured and well managed approach to retirement benefits of our public servants,” Mudenda said.
“This will have the ultimate effect of reducing the burden on the fiscus and ensure that pensioners receive fair and timely pay-outs which should arise from the accrued revenue of the fund investments.”
